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    ADDICTIVE

    ADDICTIVE
    Consumer Services·1 Dec 2025
    Management Summary

    Addictive Learning Technology reported on its H1 FY26 performance, acknowledging a revenue miss against its ₹50-60 Cr target. However, the company highlighted significant progress in its strategic pivot to an AI-enabled sales organization, which generated ₹70 Lakhs in additional sales in November with a 1:4 to 1:5 conversion rate. Key initiatives include advancing US University accreditation, an IIT Roorkee tie-up, and extensive automation, all aimed at driving future growth and improving unit economics despite current management bandwidth constraints.

    Highlights

    5
    • AI-enabled sales organization generated 70 Lakhs additional sales in November, demonstrating strong initial results.

    • The new AI-driven sales process boasts an impressive 1:4 to 1:5 conversion rate, significantly improving sales efficiency.

    • Community-based sales show a Return on Ad Spend (ROAS) that is 2x higher than traditional bootcamps, indicating a more efficient customer acquisition model.

    • The IIT Roorkee tie-up enables the company to upsell programs, increasing Average Revenue Per User (ARPU) by selling ₹65,000 programs for ₹1 Lakh+.

    • Automation in operational and course delivery, including AI-powered support and personalized roadmaps, enhances student experience and reduces human intervention.

    Concerns

    5
    • The company did not achieve its revenue target of ₹50-60 Crores for the last 6 months.

    • November and December are typically slow months due to high ad costs during Black Friday, Diwali, and Cyber Monday.

    • Management bandwidth is identified as a bottleneck for scaling operations.

    • A tech co-founder resigned, citing retirement age and stress, though the tech team remains strong.

    • The company's share price is considered low (2.3x revenue), likely due to being listed on the SME board.

    Key financials

    Single quarter

    03 metrics
    1. 01Additional Sales (Nov)70 Lakhs
    2. 02Delivery Cost22.5%
    3. 03Customer Acquisition Cost36%

    Capital allocation

    2
    medium confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Liquidity

    Liquidity disclosed

    Company has enough cash in the bank for investments in technology and university setup.

    Guidance & targets

    10
    CategoryTargetPriority
    Revenue
    Revenue
    ₹50 Crores
    Medium
    Profitability
    EBITDA Margin
    ₹8-10 Crores
    Medium
    Sales Growth
    Sales Growth (New Team)
    50-100%
    Medium
    Sales Growth
    Accelerated Numbers
    Incredible accelerated numbers
    Low
    Customer Acquisition Cost
    CAC Reduction
    25% or less
    High
    Sales
    Total Sales
    ₹150 Cr
    Low
    Listing
    Main Board Migration Eligibility
    Eligible
    High
    Bootcamps
    Number of Bootcamps
    4-6
    Medium
    ARPU
    Indian Course ARPU
    Go up a lot
    Low
    Margins
    Margins
    Improve
    Medium

    H2 FY26 Revenue and EBITDA

    next 6 months
    CurrentMissed H1 FY26 target of ₹50-60 Cr revenue
    Target₹50 Crores revenue and ₹8-10 Crores EBITDA

    Why it matters

    Verifying if the company can achieve its stated revenue and EBITDA targets for the second half of the fiscal year, especially after missing the first half's target.

    Base case is ₹50 Crores for the next 6 months. Margin (EBITDA) around ₹8-10 Crores.

    How to verify

    guidance_and_targets[category='Revenue'][target_period='next 6 months']

    Risks & concerns

    4
    RiskSeverity

    Revenue target miss

    Company missed its ₹50-60 Cr revenue target for the last 6 months.Management acknowledged

    high

    Seasonal slowdown and high ad costs

    November and December are typically slow months with high ad costs due to festive periods.Management acknowledged

    medium

    Management bandwidth as a bottleneck

    Scaling is hindered by limited management bandwidth, with plans to recruit a 'management cadre'.Management acknowledged

    medium

    Low share price on SME board

    The company believes its share price (2.3x revenue) is low due to being on the SME board.Management acknowledged

    low

    Q&A highlights

    8

    “So obviously, I need to answer the first question: that we haven't been able to do the 50-60 Cr revenue that we were hoping to do in the last 6 months. That will be one of the first questions I'm guessing will be on many of your minds—what happened, why we didn't achieve our goals?”

    Management directly addressed the significant revenue miss against their prior target, setting the context for the call.

    2 min read5 chapters

    Detailed Narrative

    01

    AI-Enabled Sales Transformation & Initial Success

    Addictive Learning Technology is undergoing a significant pivot to an AI-enabled sales organization, aiming to overcome past scaling challenges. This new model involves hiring freshers and college students, training them with an AI-enabled process that removes the need for experienced sales closers. In November, this new organization generated ₹70 Lakhs in additional sales, achieving a remarkable 1:4 to 1:5 conversion rate from its two-call process (Pain Point Discovery and Roadmap Call). The company expects to see 'incredible accelerated numbers' by January, despite November and December being typically slow months due to high ad costs.

    02

    Strategic Initiatives & US University Accreditation

    The company is actively pursuing several strategic initiatives to drive future growth and increase ARPU. A key focus is the US University accreditation process, with pre-application approval received and final board meetings scheduled for January and February 2026. This approval would enable the launch of an online MBA program focused on the Fourth Industrial Revolution, Tokenization, and AI Economy, significantly increasing ARPU for Indian students. Additionally, a tie-up with IIT Roorkee allows for top-up certifications, enabling the company to sell programs like a ₹65,000 course for over ₹1 Lakh.

    03

    Operational Efficiency & Automation

    Addictive Learning is heavily investing in automation across its operations and course delivery. This includes an AI system for matching jobs and applicants on its LawSikho Opportunity Portal, which sees 1.5 Lakh users monthly. AI is also being used to automate incoming support emails, reducing human intervention while maintaining student experience. The company is developing a new AI-driven course delivery system, expected by March, which will create personalized roadmaps, assign daily tasks, and coach students based on their goals and profiles, a feature unique in the upskilling market.

    04

    Financial Performance & Outlook

    While the company missed its H1 FY26 revenue target of ₹50-60 Crores, it projects a base case of ₹50 Crores revenue and ₹8-10 Crores EBITDA for the next 6 months. Customer Acquisition Cost (CAC) is currently high at 35-37%, but management aims to reduce it by 30% to 25% or less within the next three months through the new AI sales process. Delivery cost stands at 22-23%. The company has sufficient cash reserves and does not plan a fundraiser at its current low stock price, preferring to improve cash position through internal cash flow.

    05

    Capital Allocation & Shareholder Value

    The company has invested significantly in AI technology and the US University setup, classifying these development costs as Capex/Intangible assets which are amortized over 6 years. Promoters have shown confidence by buying ₹12 Lakhs and ₹10 Lakhs worth of shares respectively in the last 6 months, with plans for similar buying in the next 6 months. The company is not considering dividends or buybacks currently, prioritizing cash for growth. Management also expressed a desire to migrate to the Main Board within 16-17 months, believing their current share price (2.3x revenue) is undervalued on the SME board.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.